Question & AnswerQ&A (OP ADMINISTRATIVE ORDER NO. 3, S. 2010)
The Productivity Enhancement Incentive (PEI) is a one-time monetary incentive granted to government employees in recognition of their contribution to the government's fiscal and operational performance in FY 2010. It is authorized at a maximum amount of Ten Thousand Pesos (P10,000.00) each.
Eligible recipients include all government employees in the Executive Branch (including those in GOCCs and GFIs), employees in the Legislative and Judicial Branches, other offices with fiscal autonomy, and employees in Local Government Units (LGUs) including barangay governments, subject to specific conditions.
Employees must be hired on a permanent, temporary, casual, or contractual basis and must have rendered at least four (4) months of service as of November 30, 2010, and must still be in service on that date.
The incentive is pro-rated based on length of service as follows: 3 months to less than 4 months - 40%; 2 months to less than 3 months - 30%; 1 month to less than 2 months - 20%; less than 1 month - 10% of the PEI amount.
No, employees who have received any additional year-end benefit in FY 2010 beyond those authorized under Republic Act No. 6686, as amended by R.A. No. 8441, are not eligible to receive the PEI.
For National Government Agencies, the PEI funding is charged against savings from unreleased appropriations under the FY 2010 General Appropriations Act (P7,000.00 per employee) and savings in respective agency allotments for the remaining P3,000.00 per employee. For GOCCs and GFIs, funding comes from savings from the approved corporate operating budgets for FY 2010.
Yes. If a government agency or GOCC/GFI does not have sufficient funds, it may grant the PEI at a lower but uniform rate for all qualified employees.
The PEI for employees in these branches and offices may be granted by their respective heads of office at rates not exceeding Ten Thousand Pesos (P10,000.00) each, charged against their respective available savings, subject to the eligibility conditions set forth in the order.
The grant of PEI to LGU employees, including barangay employees, shall be determined by the sanggunian based on LGU financial capability and subject to the Personal Services limitation under R.A. No. 7160. The expenditure must be reasonable and should not negatively affect the delivery of public services.
The payment of the PEI shall be made not earlier than December 15, 2010.
This Administrative Order took effect immediately upon issuance on November 25, 2010.